Press Release: Parliament negotiators rescue seriously damaged bank resolution system

European Parliament negotiators on the 20 March 2014 reached a deal with their member state counterparts in the Council of the European Union on the single resolution mechanism to deal with failing banks.

The agreed text would now be tabled for a vote at the second plenary session in April 2014, the last of the 2009-2014 legislature. The Council would also have to formally agree the text.

Eurogroup President Jeroen Dijsselbloem also welcomed the political agreement with the European Parliament at the trilogue between the European Commission, the European Parliament and the Council. The European Central Bank also welcomed the development.

EUObserver reported that the proposed law represented the last big piece of the banking union blueprint drawn up by EU leaders in summer 2012 to break the link between indebted banks and governments. The new rules would apply to all banks in the eurozone, as well as to those in countries which sign up to them.

President of the European Commission, José Manuel Barroso said the 'political agreement on the single resolution mechanism completes our banking union. This will strengthen confidence and stability in the financial markets and help restore lending to the economy'.

Internal Market and Services Commissioner Michel Barnier said the 'compromise allows us to complete the architecture of the banking union for the eurozone'.

• Primary Source

European Commission: RAPID: STATEMENT/14/77: European Parliament and Council back Commission's proposal for a Single Resolution Mechanism: a major step towards completing the banking union http://europa.eu/rapid/press-release_STATEMENT-14-77_en.htm

EUObserver, 20.03.14: EU clinches accord on bank wind-down rules http://euobserver.com/news/123549

Reuters, 20.03.14: Europe strikes deal to complete banking union http://www.reuters.com/article/2014/03/20/eu-bankingunion-idUSL6N0MH1ZM20140320

http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ecofin/141672.pdf http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ecofin/141672.pdf

European Commission: The EU Single Market: Financial Services: Banking union http://ec.europa.eu/internal_market/finances/banking-union/index_en.htm

ESO: Background information: Commission proposes Single Resolution Mechanism for the Banking Union http://www.europeansources.info/record/press-release-commission-proposes-single-resolution-mechanism-for-the-banking-union/

ESO: Background information: A comprehensive EU response to the financial crisis: substantial progress towards a strong financial framework for Europe and a banking union for the eurozone http://www.europeansources.info/record/memo-a-comprehensive-eu-response-to-the-financial-crisis-substantial-progress-towards-a-strong-financial-framework-for-europe-and-a-banking-union-for-the-eurozone-2/

Euronews, 20.03.14: Europe banking union deal completed http://www.euronews.com/2014/03/20/europe-banking-union-deal-completed/

European Central Bank: Press Release, 20.03.14: Statement of the ECB on SRM agreement http://www.ecb.europa.eu/press/pr/date/2014/html/pr140320.en.html

Eurogroup: Press Release, 20.03.14: Further step taken on completion of the banking union http://eurozone.europa.eu/newsroom/news/2014/03/further-step-taken-on-completion-of-the-banking-union/

EurActiv, 21.03.14: EU negotiators reach deal to complete banking union http://www.euractiv.com/euro-finance/eu-negotiators-reach-deal-comple-news-534272

Deutsche Welle, 20.03.14: EU reaches provisional deal on winding down failing banks http://dw.de/p/1BT3N

Diário Económico, 21.03.14: Moving closer to banking union (via Euro|Topics) http://www.eurotopics.net/en/home/presseschau/archiv/aehnliche/archiv_article/ARTICLE140516-Moving-closer-to-banking-union

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